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(a) If the local board of trustees for a policemen’s pension and relief fund decides to extend this benefit for its members and if the pension fund will be actuarially sound as determined by the actuary for the Arkansas Fire and Police Pension Review Board after this benefit increase is extended to members, any member of the policemen’s pension and relief fund as established by this subchapter shall be entitled to purchase credited service in the system, not to exceed five (5) years, for service rendered by the member as a law enforcement officer in this state prior to the member’s employment covered by the policemen’s pension and relief fund.
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(b) The member may purchase the credited service if:
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(1) The member is an active member with at least twenty (20) years’ actual service in the policemen’s pension and relief fund and contributes to the pension fund an amount that is the actuarial equivalent of the value of the credited service to be purchased; and
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(2) The actuarial equivalent is of the time of the purchase of the credited service and shall be determined by the actuary for the Arkansas Fire and Police Pension Review Board, or for a pension fund under administration of the Arkansas Local Police and Fire Retirement System by the actuary for that system.
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(c) Service that is or will be eligible for benefit payment from another plan shall not be eligible for purchase under the pension fund.
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(d) The board of trustees of the pension fund shall make the final determination as to the:
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(1) Length of purchased service credit;
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(2) Amount of regular interest to be charged; and
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(3) Manner in which payment is made to the pension fund.
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(e) Service credit purchased under this section shall be used to determine the member’s total credited service under the pension fund but shall not be used to determine his or her final average pay under the pension fund.
